“The ‘hidden’ options of auctions and foreclosures can open up greater possibilities,” says Parsekhian, Broker/ Owner with Americana Real Estate Services. In some cases, these purchase methods can even offer opportunities to consumers who might not otherwise be able to purchase a home.

Properties are auctioned by motivated sellers for a variety of reasons, but the reasons rarely have any effect on the property itself. In the recent housing market, foreclosure has become regrettably familiar. But this creates a situation where banks and other mortgagees have a surplus of properties that they would rather divest themselves of than own.

Auctions and foreclosures can be found in most every area, too, and in almost every market segment: single-family homes, condos, resort and multi-unit properties.
Yet many consumers may be unaware of these purchase options or are reluctant to pursue them, due to a lack of knowledge. Certainly learning the ropes to these “alternative” homeownership paths can be difficult, and the cost of making a mistake can be steep.

However, working with someone who understands these industry niches can smooth out the process. “Real estate professionals who know how to manage both traditional transactions and those conducted through less well-known purchasing methods can help guide consumers through the intricacies of such alternative-method purchases,” says Parsekhian.

Vic Parsekhian is one of more than 50,000 members of the Real Estate Buyer’s Agent Council (REBAC) of the NATIONAL ASSOCIATION OF REALTORS®, who have attained the Accredited Buyer Representative (ABR®) designation. As the world’s largest association of real estate professionals focusing specifically on representing the real estate buyer, REBAC is “The Voice for Buyer Representation,” with more than 50,000 active real estate professional members of the organization throughout the world.
Whether down the traditional route transacting business through a seller’s agent or along less-traveled paths of finding auction and foreclosure properties, ABR-designated REALTORS® make a buyer’s best interests their own.

According to a recent report from Glendale News Press, La Crescenta continued to lead the local area of Glendale, Burbank, and La Canada Flintridge in foreclosure filings, even though figures in February improved substantially more than those of the state and the nation, dropping close to 14%.

As of February, Glendale, Burbank, La Canada Flintridge, and La Crescenta experienced a total of 357 notices of default, foreclosure sales or bank repossession, and auction sales.  This study was conducted by RealtyTrac, a real estate tracking firm.

The same source also calculated 417 filings in the month of January, which resulted in a 2% decrease in foreclosure filings nationally and about 5% in California between January and February.

While statistical numbers conclude peaks of improvement, regional foreclosures remain above compared to last year figures.  Based on February 2009 reports, local foreclosure filings were up 6%, while statewide figures was down 15%.

Signs may be pointing towards another downfall in the real estate market, but cities such as Glendale, Burbank, La Crescenta, and La Canada Flintridge are too powerful and rich to loose their value.  For those who plan on buying a property in Los Angeles, should consider the local regions of Glendale, Burbank, La Crescenta, and La Canada Flintridge.  We don’t anticipate real estate home prices to stay they way they are and we do recommend home buyers to contact our offices for more information.

Many of our clients have asked us the question, “which mortgage is right for me?” In most cases, every client’s financial background is quite different and thus results in complex solutions, which a mortgage broker or a highly qualified loan officer can figure out.

On the flip side, buying your first home or condo can seem frightening and with all the different loan programs you can be faced with a tough situation.  Whether you are looking for real estate property in Glendale or real estate investments in Burbank, we have put together a quick snippet of the various mortgage options and some helpful suggestions as to when each loan may be appropriate for you.

Save this list somewhere or simply call us for a more precise breakdown of what choice may be best for you:

Fix Rate Mortgage (30, 20, 15, 10 years) – Monthly mortgage payment & interest rate remain locked for the entire term of the loan

• Appropriate for home buyers who – plan to reside in the property for more than 10 years respectively.  Provides peace of mind and payment stability

10/1 Year Adjustable Rate Mortgage – Monthly mortgage payment & interest rate remain locked for 10 years.  Beginning of the 11^th year, your interest rate is adjusted every year so your mortgage payment is subject to change every year for the remainder of the loan.

• Appropriate for home buyers who – plan to reside in the property for more than 10 years or plan to sell the property right before the loan becomes adjustable

7/1 Year Adjustable Rate Mortgage – Monthly mortgage payment & interest rate remain locked for 7 years.  Beginning of the 8^th year, your interest rate is adjusted every year so your mortgage payment is subject to change every year for the remainder of the loan.

• Appropriate for home buyers who – plan to reside in the property for more than 7 years or plan to sell the property right before the loan becomes adjustable.

7 Year Balloon Mortgage – Monthly mortgage payment & interest rate remain locked for 7 years.  At the end of the 7^th year, loan is due in full.  Keep in mind, you (borrower) can refinance into a new loan with different stipulations.

• Appropriate for home buyers who – plan to reside in the property for more than 7 years or if you can position yourself financially to refinance when your term is done.

5 Year Balloon Mortgage – Monthly mortgage payment & interest rate remain locked for 5 years.  At the end of the 5^th year, loan is due in full.  Keep in mind, you (borrower) can refinance into a new loan with different stipulations

• Appropriate for home buyers who – plan to reside in the property for more than 5 years or if you can position yourself financially to refinance when your term is done.

He also went on to say that it is very important for prospective buyers to no withhold any information such as income or credit status.  Real estate professionals aren’t trying to pry, but rather get all the details that are relevant to the purchase and one’s ability to get the best mortgage.

By openly discussing your financial situation, you give your agent more leverage to find you the best home you can afford.  Parsekhian notes, “if you stay quiet, you are putting the real estate agent or the loan officer in a tough position.  Both the prosecptive buyer and the seller waste time and money during this whole process.”

Once you have signed a contract or commitment to purchase the property, the next step is to choose a lending organization or a mortgage company from which to obtain your home loan.  The loan application will ask the prospective buyer to provide a place of employment, their assets, and liabilities.  The loan application will also ask you to include any recurring debts such as credit card bills, school payments and/or car payments.

Speaking with the professionals from Americana and Finance, here are a few pointers they mentioned when it comes to qualifying for a loan.  1) Do not borrow the down payment without disclosing the loan, make secret financial preparations, or put forward fake letters-of-credit or gift letters. 2) Accurately list your income and assets, all debts and a rough amount you owe anything.

In most cases, you will be charged a small credit report fee ($20) by the lender, which will give the lender or the mortgage company your credit history.  Credit reporting agencies gather credit reports on consumers, past bill payments, and any legal lawsuit that either you have filed or some has filed against you.  Note, you are entitled to a summary of your credit report and a summary containing the sources of the report’s information.  If your ability to obtain a mortgage is unfavorably affected by the credit report, you have the right to challenge its accuracy and seek corrections.

It’s important to visualize your needs and plan ahead. “Know what you want in a home, what’s important to you, and what you can live without,” Vic Parsekhian, CEO of the Americana Real Estate and Finance says. “Many of us start out with a champagne taste and a beer pocketbook, so it’s important to be realistic,” he adds.

Where and what you buy will affect you for as long as you live in the house. “Get your priorities in order before you start looking or even talk to a real estate broker or sales associate,” Parsekhian says.

For first-time home buyers this is a new experience, so it’s especially important to do your homework. If you currently own a home, you know exactly what’s lacking. You may need another bedroom or bathroom, or a good school nearby.

First, decide where you want to live. A big part of the answer hinges on where and how you earn a living. If your job requires a lot of reading or is quite stressful, public transportation may offer valuable time to sit quietly. “Regardless, you should practice the commute in rush hour before you make a commitment. A seemingly quiet road can transform into gridlock during peak hours,” Parsekhian cautions.

People with children have other major considerations: school and safety. If you plan to send your children to private schools, you can live where you want assuming you can easily arrange transportation. On the other hand, a lavish public school system may indicate high local real estate taxes. Check them out.

Obviously, lifestyle is an important consideration. People who frequently dine out, go dancing and attend the theater probably belong in the city or a close-in suburb. “In other words, make sure you’re in close proximity to the things that matter most,” Parsekhian says.

It used to be that homes came in a limited variety, but today, you have many choices. In addition to the traditional single-family home, you can buy a townhouse, condominium or apartment condominium or co-op.

In planned unit developments (PUDs), you can find almost any combination. In condos and other such communities, make sure the rules and regulations, as well as the by-laws, match your lifestyle. This type of housing is great for people who want to own their own space without being responsible for mowing the lawn or repairing the roof; a management company handles that.

On the other hand, you’ll pay fees for these services. “In addition to checking the documents and financial soundness of the homeowner’s association, you must determine if the monthly fees are worth the services and additional amenities such as a swimming pool or exercise room,” Parsekhian explains.

Affordability can be a factor not only in the type of housing, but whether it’s new or an existing home. Old houses often have fine woodwork or interesting nooks and crannies not normally found in new homes. They generally sit on landscaped lots with mature trees and grown bushes.

New homes may cost more, but you can make many more decisions on amenities, colors, carpeting and fixtures. “Make sure you’re dealing with a reputable builder, and have an attorney review all documents, Parsekhian says.

Selecting a real estate professional is an important first step in beginning your search. “Ask for personal recommendations to find an individual who is knowledgeable about the neighborhood and has access to the local Multiple Listing Service,” Parsekhian says. Make sure you feel confident about his or her knowledge and skills, and understand the business relationship that you have established between you.

Parsekhian is one of more than 50,000 members of the Real Estate Buyer’s Agent Council (REBAC) of the NATIONAL ASSOCIATION OF REALTORS®, who have attained the Accredited Buyer Representative (ABR®) designation. As the world’s largest association of real estate professionals focusing specifically on representing the real estate buyer, REBAC is “The Voice for Buyer Representation,” with more than 50,000 active real estate professional members of the organization throughout the world.

Asking Price: $3,750,000

Quick Facts:

Status: Active

LD: 01/15/2010

Area: Glen-Northwest

YrBuilt: 1978

APN: 5623005038

BldSF: 6549

Prop Type: Commercial

Lot Size: 41256

List Type: Excl. Right to Sell

Zoning: Glendale C3

Showing: Appointment Only, Call Listing Office

#ParkSpac:0

DOM: 17

Terms: Cash, Cash to New Loan

• Average listing price for the weekend of January 2010 was $635,387.

• The median sales price from September 2009 to November 2009 was $545,000 based on 449 home sales.  Up roughly by 6% from last of this time.

• The average price per square foot from September 2009 to November 2009 was $503, and increase of roughly 50% compared to the same period from last year.

Safety is also another important factor in purchasing a property in Glendale, CA.  Fortunately for our residents, Glendale is one of the safest places to live as compared to other areas of Southern California.  Below is the 2009 crime statistic for Glendale, CA:

Earning potential for individual and family households also plays a pivotal role in property crime.  Typically, the higher the earning wage the lower the crime rates.  Streets such as Brand and Central Blvd. play a huge role in mitigating crime, because large businesses attracts working families and provide the community with a sense security.  Below is a chart of the average household income, family income, per capita income and vale of owner-occupied housing unites in Glendale, CA:

We hope you find this information helpful and we look forward to speaking with you if you have any questions or concerns.

USGBC also estimated that residential and commercial buildings in the United States are accountable for 39 percent of CO2 emissions with 13 percent in water consumption and 40 percent in energy consumption.  The data estimated by USGBC indicates that green building construction and technology will pave an economic growth in our recession.

This environmental opportunity should be the forefront of every corporate business and slowly into the homes of residents.  We can all agree at this time green construction can be a bit more expensive than traditional construction items, but we must slowly transform all real estate construction jobs into a green job.

On the bright side, cost of green building is slowly going down because real estate construction companies and real estate agents are becoming more experienced and educated in this field.  This spiral effect of becoming more efficient in green construction will eventually lead to a cleaner environment and less carbon footprint to help protect the world.

Our youth (a.k.a the Y Generation) is becoming more cognitive of their surrounding and the world.  Corporate offices with green offices have a less stressful time recruiting and keeping employees.  Students like myself are constantly seeking social-minded employers who understand the importance of green building and the reduction of carbon footprints.

For those Glendale homeowners, Burbank, La Crescenta, and Pasadena homeowners it may be wise to consider upgrading your home to be more environmentally friendly if it’s financial feasible.  This could mean a littler more green in your pocket when you sell your home.

However, this mindset of going green will take some time.  While green may be gaining in popularity it’s still not at the level where buyers will pay a lot more money for it.  Green building has a regional interest. So, for instance, in the west, water-saving efforts are a high priority when it comes to green building. For a closer look at how to go green contact us and speak to one of our experienced real estate agents who are experts in environmental planning.

As mentioned in our previous article where legislation extended the $8,000 tax credit to first time home buyers, any local city around Los Angeles, CA will most likely see a small increase in their home value.  Therefore, for those who are looking to purchase a new home, finding the right city might be the key.  Here are a few pointers to look for when choosing to find the right location for your next home:

Number 1: Home prices in 2009 vs. home price in 2006 – we all know home prices have dropped significantly and for those who purchase a home near a metropolitan area will now gain a property that hit the crises bubble of 2007.  In other words, in the long run, your home will reach that bubble price again, but in a positive way and will be looked at as a wise investment.  Home price from here on out will gradually increase as long as time previals so the key here is to be patient and make sure to work on bringing your loan down as fast as you can.

Number 2: List to sale price ratios is working in favor of the buyer – on a national level, majority of the homes in the real estate market are selling at 5% to 10$% below the asking price.  However, locally in Glendale, Burbank, and Pasadena, majority of the homes on sale are selling at its asking price.  A strong indicator that these particular areas are not suffering as significantly as much as other cities across the nation.

Number 3: Unemployment rate – California residents are currently suffering the most in regards to our high unemployment rate, but lets not forget California can be considered two states (Nothern and Southern) and that it’s unfair to judge our unemployment rate compared to other states.  The great thing about buying real estate in Glendale, CA or Burbank, CA is that it’s right next to Downtown Los Angeles and the Valley.  These areas are filled with small to large size businesses and when the economy and the unemployment rate come back into its norm, majority of the properties will tremendously gain ground.  Without a job or income, a potential home buyer cannot buy a home.

Vic’s Advice: Save, Save, and Save.  In the long run your savings account will pay off as a down or a large chunk of your mortgage.  Although real estate might be expensive in Glendale, Burbank, Studio City, or Toluca Lake, keep in mind home prices will eventually increase in value due to its relation and close distance to Downtown Los Angeles.

The U.S. Senate neared a compromised to adopt the Dodd-Lieberman-Isakson amendement which not only extends the $8,000 tax credit offer to first time home buyers, but also generates a new credit up to $6,500 for homeowners that have lived in their homes for five yeas.  This new amendment will begin December 1, 2009.  The $8,000 credit to first time home buyers extension will go on until April 30th, 2010.  If you are under a contract by April 30th you will still be able to qualify for the tax credit so as long you complete the transaction within 60 days.

California Association of Realtors president James Liptak mentioned recently “According to our research, nearly 40 percent of first-time buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered. This underscores the significance of the federal tax credit to the housing market’s recovery in California.” (Resource)

This will most likely be the last extension proposed by politicians and accepted by the Senate, because tax credits as good as this can only survive and work efficiently if their is a strong demand from buyers.

For those whose homes cost more than $800,000 are not qualified for the tax credit nor are single home buyers with an income of $125,000 per year and$225,000 for married couples that file jointly.  For those who are eligible for the tax credit must look at this extension as an extra incentive to purchasing a home, not to cure wonders.

Whether the tax credit extension will boost home sales or not, one thing is for sure certain, we are in an economy that has no self-confidence and adding an extension like this will only help us grow further.

What do you think?  Do you think the tax credit extension will boost home sales or create a mess in regards to the supply of housing on the marketing where demand outweighs supply?